Applications, hearings, determinations, etc.: Hummon Corp.,

[Federal Register: April 29, 1998 (Volume 63, Number 82)]

[Notices]

[Page 23428]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr29ap98-46]

[[Page 23428]]

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. SA98-80-000]

Hummon Corporation; Notice of Petition for Adjustment

April 23, 1998.

Take notice that on April 3, 1998, Hummon Corporation (Hummon) fileda petition, pursuant to section 502(c) of the Natural Gas Policy Act of 1978 (NGPA) [15 U.S.C. Sec. 3412(c)] and Subpart K of the Commission's Rules of Practice and Procedure, on behalf of certain working interest owners for whom Hummon operated. Therein, Hummon seeks an adjustment relieving those working interest owners of their obligation to make Kansas ad valorem tax refunds to Northern Natural Gas Company (Northern) and/or Panhandle Eastern Pipe Line Company (Panhandle), on the basis that the working interest owners' financial status cannot absorb the payment of the refunds claimed, over the next five years. Hummon bases its financial status claim on a statement reflecting the projected net profit for Hummon and its working interest owners over the next five years (Statement 1), and on a statement of the net income from the subject wells over the past two years (Statement 2). Hummon's petition is on file with the Commission and open to public inspection.

Hummon indicates that Panhandle is claiming a $11,440.19 total refund with respect to the Perry Lease. Hummon's Statement 1 and Statement 2 data for the Perry Lease are shown below. Hummon bases its 5-year projections on a $14 oil price and $1.85 gas price.

Perry lease

Actual............................................ 1996 $2,793 1997 (3,619) Projected......................................... 1998

310 1999 (1.090) 2000 (2,280) 2001 (3,288) 2002 (5,156)

....... \1\ (11,504 )

\1\ Hummon's petition erroneously calculates the net loss to be $10,504.

Hummon indicates that Northern is claiming a total refund of $80,923.52 with respect to multiple leases. Hummon identifies the following leases, and provides the lease status and the refunds generated by each lease:

Combrink Lease................. Plugged in 1994........ $1,272.24 Hazen Lease.................... Plugged June 20, 1983..

1.321.78 Hibbert Lease.................. Plugged December 1985..

2,250.54 Harper Ranch #1 GU............. Second well drilled in

16,317.79 1995.

Harper Ranch #2 GU............. Evaluating well for

2,423.67 plugging.

McMinimy Lease................. Producing.............. 57,223.80

80,809.82

Hummon provides its Statement 1 and Statement 2 data for the three active leases (Harper Ranch #1 GU, Harper Ranch #2 GU, and the McMinimy Lease). Hummon's 5-year projected net profit/loss for each of these three leases is based on a $14 oil price and a $1.85 gas price.

Harper Harper McMinimy ranch #1 GU ranch #2 GU lease

Actual......................................................

1996 \1\ $60,889 ($6,407) \2\ $26,019 1997 14,372 (1,802) 31,831 Projected...................................................

1998 14,104 (1,610) 32,479 1999 5,749 (3,532) 23,293 2000 (1,353) (5,167) 15,485 2001 (7,384) (6,556)

8,849 2002 (12,517) (7,739)

3,206

........... (1,401) (24,604) 83,312

\2\ Hummon asserts that this figure is caused by flush production from a second well drilled on the lease.

Overall, Hummon states that seven (7) wells are involved in its petition, and that each has different working interest owners. Hummon's petition does not identify the working interest owners by name that are involved in the petition, and does not provide any information regarding the financial status of any of those working interest owners.

Any person desiring to be heard or to make any protest with reference to said petition should on or before 15 days after the date of publication in the Federal Register of this notice, file with the Federal Energy Regulatory Commission, 888 First Street, N.E., Washington, D.C. 20426, a motion to intervene or a protest in accordance with the requirements of the Commission's Rules of Practice and Procedure (18 CFR 385.214, 385.211, 385.1105, and 385.1106). All protests filedwith the Commission will be considered by it in determining the appropriate action to be taken but will not serve to make the protestants parties to the proceeding. Any person wishing to become a party to a proceeding or to participate as a party in any hearing therein must file a motion to intervene in accordance with the Commission's Rules. David P. Boergers, Acting Secretary.

[FR Doc. 98-11311Filed4-29-98; 8:45 am]

BILLING CODE 6717-01-M